Bhubaneswar: After de-empaneling three private banks for not meeting general banking parameters, Odisha government clears confusion over its order on closure of bank accounts. 

In an official notification, Odisha Finance Department clarified that the instructions communicated to all departments asking to close their bank accounts in HDFC Bank, ICICI Bank and Axis Bank, will not be applicable in case of Single Nodal Agency (SNA) bank accounts, payment aggregator/payment gateway bank accounts, Agency bank accounts (for collection of state government dues) and NPS/Pension trustee bank accounts currently maintained in these three banks. 

Hence, the bank accounts of the state government organisations will continue in these private banks in above-mentioned cases. 

However, no new account for these purposes will not be opened in these banks till further order, the Finance Department cleared. 

On June 21, Odisha Finance Department removed HDFC Bank, ICICI Bank and Axis Bank from the list of banks empanelled for handling business and deposits of Odisha government and its departments, directorates, HoDs, establishments, agencies, PSUs, societies and universities with immidiate effect citing 'poor performance' in some flagship government schemes and discouraging general banking parameters.

The department asked all the departments of the state government to close their savings, current and other running accounts in the above said three private banks immediately and transfer the account balance to other empanelled banks. 

However, the government departments were asked not to close their fixed deposits and term deposits accounts in the three banks for now, and directed them to transfer the money from their fixed deposit accounts in these private banks to other empanelled banks upon their maturity.